Point  of  View:  Let’s  Chat-­‐  Key  Considerations  When  Implementing  Chat  in  Your  Contact  Center  

 

Point  of  View:  Let’s  Chat  

Key  Considerations  When  Implementing  Chat  In  Your  Contact  Center    

You’ve  likely  seen  them  when  searching  the  Web  or  viewing  retail  and  tech  websites...those  ever-­‐so-­‐common  Chat  icons  that  dance  across  the  screen  or  appear  in  easy-­‐to-­‐see  locations  on  key  Web  pages.  And,  chances  are  you’ve  used  Chat  and  found  it  to  be  a  convenient  service  channel.  

 

Widespread  Use  of  Chat  

With  Chat  becoming  ubiquitous  across  the  Web,  management  will  invariably  spend  time  discussing  the  merits  of  adding  Chat  to  their  customer  contact  channels.  For  example,  Chat  offers:    

• Real-­‐time  connection  to  customers;  questions  answered  and  issues  resolved  in  real  time  

• Typing  as  the  growing,  preferred  method  of  communication  

• Integration  into  customer  relationship  management  systems;  chat  history/chat  logs  

For  many  financial  institutions,  Live  Chat  functionality  may  already  be  part  of  the  phone  system  or  is  offered  by  their  telecom  vendor  for  a  nominal  cost,  so  the  upfront  capital  outlay  may  be  minimal.    

When  opening  any  new  channel,  it’s  important  for  management  to  fully  understand  the  impacts  to  the  bottom  line  and  brand.    As  with  all  product  decisions,  there  are  factors  that  need  to  be  taken  into  account  before  implementation.  In  this  paper,  we  have  highlighted  what  we  feel  is  important  when  considering  the  implementation  of  Chat  in  your  Contact  Center.    

Chats  Are  Protracted  

First  and  foremost,  Chat  engagements  are  not  brief.  On  average,  chat  sessions  with  a  customer  will  take  9-­‐11  minutes,  compared  to  a  3-­‐5  minute  inbound  phone  call.1  While  both  examples  have  agents  engaged  directly  with  a  customer,  a  chat  session  differs  from  an  inbound  call  in  several  key  ways:  

   

                                                                                                               1  Advisors  Plus®  Proprietary  Call  Center  Metric  Database  

 

Point  of  View:  Let’s  Chat  

• The  customer  controls  the  Chat  session’s  length.  Their  slow  typing  can  be  an  issue,  but  distractions  delaying  their  replies  are  most  problematic––the  customer  is  engaged  with  other  work,  the  boss  walks  in,  the  kids  start  screaming,  etc.  With  a  phone  call,  these  events  would  shorten  the  call;  with  Chat  they  lengthen  it.  

• Like  inbound  calls,  there’s  a  specific  Chat  service  expectation.  Customers  anticipate  an  immediate  response  from  the  agent,  even  though  the  customer’s  reply  may  be  considerably  delayed.  Therefore,  your  agent  has  to  remain  focused  on  the  Chat  session  without  becoming  too  involved  in  other  tasks.  Agents  must  respond  quickly,  otherwise  service  perception  will  falter.  

• At  2-­‐3  times  your  average  call  length,  the  Chat  session  becomes  a  very  expensive  engagement.  Call  costs  average  $3  to  $6  per  call,  translating  into  Chat  sessions  costing  $6  to  $18  per  engagement.  Factor  in  the  lost  opportunity  cost  of  that  agent  sitting  idle  waiting  for  a  customer  Chat  reply,  and  costs  climb  even  higher.  

• Chat  can  reduce  your  e-­‐mail  volumes,  especially  if  Chat  is  accessible  within  your  Home  Banking  application.  E-­‐mailers  will  migrate  to  Chat  if  it’s  available,  however  it  moves  your  action  from  a  delayed,  “do  it  when  there  is  time”  response  with  e-­‐mail  to  immediate  action  with  Chat.  

• Finally,  Chat  doesn’t  necessarily  decrease  call  volumes.  Chat  is  simply  another  channel;  those  calling  in  will  not  necessarily  migrate  to  chat,  and  “chatters”  may  have  never  called  in.  Expect  every  chat  to  be  a  net  new  real-­‐time  engagement  with  resulting  increased  cost.  

The  usual  counterpoint  to  these  issues  is  that  Chat  allows  agents  to  engage  in  concurrent  sessions  with  multiple  customers,  making  them  ultra-­‐productive  and  bringing  engagement  costs  in  line  with  inbound  calls.    

However  for  the  average  financial  institution,  chat  is  a  low-­‐volume  channel  that  precludes  concurrent  sessions.  Typically,  we  see  Chat  volume  averaging  one  to  two  percent  of  total  inbound  call  volume.  For  a  Contact  Center  receiving  25,000  inbound  calls  monthly,  there  would  correspondingly  be  only  250-­‐500  chats.  If  the  center  is  open  for  9  hours  daily  and  4  hours  on  Saturday,  the  Chat  volume  would  average  a  little  more  than  1-­‐3  per  open  hour.  

With  these  impacts  recognized,  it  may  still  be  sensible  to  move  forward  with  Chat.  It  can  certainly  be  a  great  channel,  especially  if  you  have  overseas  customers,  a  younger  demographic  or  your  customers  are  technologically  astute  with  a  desire  for  the  channel.  

   

 

Point  of  View:  Let’s  Chat  

First  Steps  in  Chat  

If  management  decides  to  proceed  with  Chat,  we  recommend  initially  developing  a  deployment  strategy  with  the  following  considerations:    

• Display  the  Chat  icon  deeper  in  your  website,  not  directly  on  the  homepage.  With  Chat  length  significantly  greater  than  a  call,  allowing  access  on  your  homepage  can  create  avoidable  expense  as  noncustomers  and  customers  alike  shortcut  searching  and  inquire  about  basic  services  that  can  be  more  quickly  answered  via  a  phone  call.    

• A  key  purpose  of  your  website  is  to  encourage  viewers  to  explore  and  become  familiar  with  your  financial  institution  and  products.  Placing  the  Chat  icon  on  the  homepage  presents  a  direct    line  to  get  a  question  answered,  but  limits  the  impact  of  your  website  to  promote  your  organization.    

• Tie  Chat  access  around  products  that  make  or  save  the  financial  institution  money.  Having  Chat  accessible  on  your  loan  application  pages  is  a  perfect  example  of  logical  deployment.  The  user  is  interested  and  invested  in  your  institution;  they  are  attempting  to  apply  for  a  loan  and  may  need  assistance;  you  certainly  want  to  engage  them  at  this  point.  A  customer  trying  to  sign  up  for  e-­‐statements  is  another  prime  help  spot.    

• Once  you  commit  to  offering  Chat,  make  sure  you  can  support  it.  There’s  nothing  worse  than  offering  Chat  but  then  frequently  taking  it  offline  due  to  staffing  shortages.  If  the  icon  is  on  the  site,  customers  had  better  be  able  to  use  it.  And  don’t  forget  Saturdays  or  extended  hours,  when  most  Contact  Centers  are  minimally  staffed.  Lengthy  Chat  sessions  could  negatively  impact  all  customers  seeking  service  during  those  times.  

Best  Practices  in  Chat  

To  make  Chat  successful,  we  recommend  the  following  steps  to  ensure  the  channel  is  managed  as  effectively  and  efficiently  as  possible:  

• If  feasible,  place  the  Chat  responsibility  outside  of  the  Contact  Center  or  to  designated  agents  not  relied  upon  to  answer  calls.  Many  institutions  have  e-­‐Banking  areas  that  support  e-­‐mail,  home  banking  or  other  PC-­‐based  products.  By  segregating  Chat  from  inbound  call  dependencies,  your  Contact  Center’s  service  metrics  won’t  be  affected  by  the  longer  engagement  times.  

• Regardless  of  where  Chat  is  handled,  your  Chat  agents  need  to  have  specialized  training  to  enhance  their  skills.  Excellent  spelling  and  grammar  are  mandatory.  Anyone  applying  to  be  a  Chat  agent  should  be  tested  on  writing  comprehension,  ability,  and  speed.  In  our  text-­‐abbreviated  

 

Point  of  View:  Let’s  Chat  

digital  world,  these  skills  are  harder  to  find,  but  every  piece  of  communication  reaching  your  customer  is  a  direct  reflection  of  your  organization,  making  it  paramount  to  have  the  right  agents  in  these  positions.  

• Don’t  overdo  canned  responses.  It’s  natural  to  think  that  selecting  from  an  inventory  of  preplanned  and  typed  responses  would  be  quicker  than  typing.  Not  necessarily.  At  one  client  we  reviewed,  they  had  so  many  prepared  responses  it  took  the  agent  longer  to  find  the  appropriate  reply  than  to  type  it.  Additionally,  many  of  the  responses  either  didn’t  fit  the  question  asked  or  were  totally  wrong.  

• Monitor  each  agent’s  performance  against  the  group.  As  with  talk  times,  Chat  times  can  vary  among  agents.  And  with  overall  engagement  times  longer,  the  spread  can  be  significantly  wider.  We  were  at  one  client  with  an  established  Chat  channel,  and  the  variance  in  chat  times  ranged  3-­‐10  minutes  among  the  agents.  It  doesn’t  take  long  for  your  cost  per  engagement  to  spiral  upward.  With  this  client,  the  lower  performing  agent  was  costing  approximately  $250  more  each  month.  

Strategize  Your  Chat  

In  summary,  Chat  seems  to  be  everywhere  on  the  Web.  Visit  most  retail  or  tech-­‐oriented  merchants  and  they  surely  have  Chat  capabilities.  Financial  institutions  and  specifically  credit  unions  have  been  slower  adopters.  In  our  view,  Chat  may  have  a  place  in  today’s  client  customer  contact  strategy,  and  most  probably  customers  will  look  for  it  more  in  the  future  as  it  becomes  prevalent  across  all    merchant  websites.  

However,  we  feel  it  is  absolutely  critical  that  implementation  of  Chat  be  well  thought  out,  with  a  detailed  strategy  and  understanding  of  exactly  how  much  time,  effort  and  expense  is  necessary  to  support  it.  Chat  must  truly  be  a  benefit  to  the  customers,  and  not  a  poorly-­‐sourced  offering  that  is  inefficient  and  frustrating  to  use  and  which  then  renders  a  negative  image  of  the  organization.    

     

 

Point  of  View:  Let’s  Chat  

For  More  Information  

Frank  Kovach  Strategic  Consultant  727.566.4013  269.330.0083  mobile    fkovach@advisorsplus.com  

Arnie  Goldberg  Business  Development  727.299.2535  813.316.8036  mobile  agoldberg@advisorsplus.com      About  Advisors  Plus    

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